Detailed Answer

Payable-on-death (POD) accounts are bank accounts that a depositor designates to transfer directly to a named beneficiary when the depositor dies. In most situations, a POD designation causes the account balance to transfer outside of probate: the bank pays the named beneficiary after it receives proof of death and any required documentation.

Under New Hampshire practice, that basic structure means two important points for creditors:

1. Nonprobate status: Because POD funds usually pass directly to the beneficiary and do not become assets of the probate estate, unsecured estate creditors generally cannot reach POD funds by presenting a claim against the probate estate alone.
2. Limited exceptions: There are situations where POD funds can become subject to creditor claims or other collection efforts. Typical exceptions include:

• Transfers intended to defraud creditors — if the transfer was made to hide assets from known creditors before death, New Hampshire fraudulent-transfer rules can be used to unwind the transfer.
• If the account was not a true POD but instead a joint account with rights of survivorship, creditors of the deceased joint owner (or of the surviving owner) may have a different path to the funds.
• When state law specifically allows certain claims to reach nonprobate property (for example, some statutes provide priority for certain family allowances, medical or funeral liens, or taxes). Check the probate procedures and statutes that govern creditor claims in New Hampshire.
• If a beneficiary uses funds in ways that create a claim for unjust enrichment, creditors or the estate representative may pursue remedies against the beneficiary in some circumstances.

Put plainly: if other estate assets are insufficient to pay creditors, POD accounts often remain outside the estate and therefore are not automatically available to satisfy those creditors. But because there are exceptions and possible legal remedies creditors can pursue, POD money is not absolutely immune.

Practical steps under New Hampshire practice

1. Identify whether an account is truly POD (a designated beneficiary) or a joint account with survivorship rights. Banks treat these differently.
2. Collect documentation: account statements, the bank’s account agreement, the death certificate, and any beneficiary designation forms.
3. Notify the bank and do not withdraw or move funds until you understand the account type and any legal obligations. Banks have procedures and will usually require a death certificate and beneficiary identification.
4. If creditors are pressing claims and the estate administrator believes there are not enough probate assets, consider opening an estate administration. Creditors typically must present their claims in the probate administration process; counsel can advise whether a creditor could reach nonprobate assets in your situation.
5. If you suspect a transfer was made to evade creditors, raise that issue quickly with counsel or with the probate court — statutes and case law addressing fraudulent transfers can apply.

For New Hampshire statutes and probate procedures, see the New Hampshire Revised Statutes and the New Hampshire Judicial Branch probate information:

• New Hampshire Revised Statutes (RSA) — General Access
• New Hampshire Judicial Branch (probate information and local court contacts)

Because whether a particular POD account can be used to satisfy estate creditors depends on the facts (account type, timing of transfers, whether transfers were intended to hinder creditors, and applicable New Hampshire rules), talk to a probate or estate attorney if the sums are significant or if creditors are asserting claims.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create an attorney-client relationship. For advice about a specific situation under New Hampshire law, consult a licensed New Hampshire attorney.

Helpful Hints

• Confirm whether an account is POD or a joint account before assuming funds are protected.
• Keep the original beneficiary designation forms and recent bank statements; they are often decisive.
• Get multiple certified copies of the death certificate — banks and courts often require them.
• Do not spend or move funds until you understand the legal picture; improper handling can create liability.
• If creditors contact you as a beneficiary, forward them to the estate’s personal representative or an attorney; do not admit or negotiate without counsel.
• If the decedent had substantial creditor claims, consider opening probate administration so claims are addressed in an orderly process.
• If you suspect a transfer was made to avoid legitimate creditors, seek legal advice promptly because statutes of limitations and procedural deadlines may apply.
• For step-by-step forms, deadlines, and probate filing instructions, contact the local New Hampshire probate court or visit the New Hampshire Judicial Branch website above.